residual risk

Definition

A risk that remains after all efforts have been made to mitigate or eliminaterisks associated with a business process or investment. After a risk assessment, a residual risk may be known but not completely controllable, or, it may not be known. In either case, the residual risk is assumed by whoever owns the investment or the business process.

Use residual risk in a sentence

“
You need to find a way to make sure that you limit the residual risk before you take on any new deal.
”